Cars

'Buy American' alive and well in auto industry

SAN FRANCISCO (MarketWatch) -- A wave of patriotism seems to be washing over America's car-buying public these days, according to a recent study, even if last month's industry sales results tell a different story.

In a Consumer Reports survey of almost 1,800 adults, 81% of those in the market for a new car said they were likely to consider a domestic brand. That compares to just 47% looking at Asian brands and 46% in the market for European models.

Ford Motor Co.
F, +0.58%
looks to be the biggest beneficiary from the increasing interest in U.S. vehicles.

General Motors Co., fresh out of bankruptcy, also saw a spike, though not nearly as pronounced as Ford's.

Interest levels for Chrysler, however, dropped substantially from where they were just about a year ago, with respondents citing a lack of appealing products and the tenuous financial condition of the company.

"The Detroit Three have been in the spotlight all year," said Rik Paul, automotive editor, Consumer Reports. "Ford was the only one ... that did not seek federal assistance, and this has likely helped bolster its reputation among car buyers."

The survey was published one day after U.S. August sales numbers showed that Asian carmakers were the big winners in the "cash for clunkers" program.

Korea's Hyundai
HYMLF, -11.11%
and Kia brands reported huge gains while both Chrysler and GM suffered declines. Honda Motor Co.
HMC, +0.50%
and Toyota Motor Corp.
TM, +0.03%
also posted improvements, leading Asian-based brands to a record 52.3% share of the market, according to Autodata.

Meanwhile, U.S. carmakers saw their share drop to just under 41%. See full story.

Troubling for the entire auto industry is the survey finding that showed only 9% of respondents expressed interest in buying any new car in the next year, down from 19% in a June 2008 survey. That's hardly a surprise considering the big spike in sales the government's clunker promotion had in August.

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